Question

While calculation of GVA and NVA where to add subsidy I am totally confused can anyone explain me ???​

Answer 1

Answer:

1) Gross value added= value of output- intermediate consumption. 2) Net value added= gross value added- depreciation.

Explanation:

Again, Net value added = Gross value of output – Value of intermediate consumption

Gross value of output = value of total sales of goods and services + value of changes in the inventories.

GVA can be used for measuring of the contribution to GDP made by an individual producer, industry or sector.

It’s simple formula is-

Gross value added = GDP + subsidies on products - taxes on products

where GDP=GDP = private consumption + gross investment + government investment + government spending + (exports - imports)

At a company level GVA reveals about the value added by the products and services of a firm. Simply put, GVA tells the contribution of the firm’s products and services in monetary terms to meet the fixed cost.

Thus, the formula becomes-

GVA= Sales + Income from other services - cost of raw materials - cost of production - cost of services availed from outside supplier (if any).

NVA or Net value Added which is more robust in terms of revealing the actual bottom line profit. Gross Value Added or Total Value Added reports depreciation along with retained profits. GVA shows that depreciation is also available for reinvestment in addition to the retained earnings and reserves for the maintenance and expansion of the company. Whereas, in case of NVA, depreciation is treated as expenses and therefore denotes that it is not available for re-investment purpose by the enterprise which obviously makes more sense.

Answer 2

Explanation:

$f(x) = \begin{cases} 0 & \text{if x is rational} \\ 1 & \text{if x is irrational} \end{cases}$

$\boxed{\sf \sin x = \sum\limits_{n=0}^{\infty} \frac{(-1)^n x^{2n+1}}{(2n+1)!}}$